some of the print is small but I copied it so can't change it..

Stornoway will attract corporate attention, we believe, from companies looking to expand rough diamond production. There are
several issues here to consider including the positions of Soquem (owns 50% of the project), Agnico Eagle (owns 15.8% of
Stornoway) and Rio Tinto (owns 9.7% of Stornoway).
Soquem is the wholly-owned subsidiary of the Quebec government created in 1985 to contribute directly to the discovery and
development of mines in Quebec. We expect Soquem to participate in its share of the funding of the Renard project and the help
Stornoway in negotiations with issues, such as those concerning hydro-power and roads, to ensure the success of the project. Longerterm,
given the likely attractiveness of new diamond projects in Canada, Soquem’s stake in Renard could attract the interest of
companies looking to expand production.
Agnico Eagle’s stake in Stornoway arises from the Stornoway takeover of Ashton Canada in late 2006 and the refinancing of
Stornoway in 2008. As a gold producer we would view Agnico’s stake as non-core but also supportive to Stornoway in its exploration
and development projects. Agnico’s CFO David Garofalo is on Stornoway’s board of directors and Agnico was a key contributor to
Stornoway’s cost and capex estimate for Renard. As for Rio Tinto, this stake comes from the sale in 2006 of its 56% interest in Ashton
Canada to Stornoway. This holding appears to be non-core to Rio.
The conclusion we would come to is that a favourable corporate approach to Stornoway would need the support of Agnico and Rio
Tinto. This should give some comfort to Stornoway shareholders that the company, while potentially in play, would not be vulnerable
to a low-ball bid from a hostile corporate.